DP10184 Agglomeration theory with heterogeneous agents

Author(s): Kristian Behrens, Frédéric Robert-Nicoud
Publication Date: October 2014
Keyword(s): agglomeration, city-size distribution, heterogeneous agents, inequality, selection, sorting
JEL(s): D31, R12
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=10184

This chapter surveys recent developments in agglomeration theory within a unifying framework. We highlight how locational fundamentals, agglomeration economies, the spatial sorting of heterogeneous agents, and selection effects affect the size, productivity, composition, and inequality of cities, as well as their size distribution in the urban system.